How To Manage Stress During a Down Market

This Too Shall Pass

It’s happened before, and it will happen again. The Dow has fallen quickly, to great depths, and has rebounded afterward. Terrorism, a housing crisis, and other challenges have brought the market to the brink, and the market has always rebounded spectacularly. All we’ve needed to do was wait.

Keep Your Fears in Check

Granted, waiting during times like these is difficult. The markets have always been about numbers and informed rational decisions. The markets work best when heads are cool, calm, and collected. However, we also know the markets are heavily influenced by emotions—our collective emotions. If we want the markets to stabilize and grow— and it will—sooner, then we must do our part to stay calm and check our fears at the door. 

Investors and emotions don’t mix. When making investment decisions, it’s always better to be sensible and neutral. Making rash decisions can keep you from growing your money, because you may be tempted to react, rather than respond. How does an investor stay calm at times like this? Here are some tips on how to do just that.  

Don’t Fight the Market

Resist the “fight or flight” stress response. The adrenaline rush of seeing the markets fall can lead you to leave the market in a fit of panic or make other rash decisions. Resist the urge to fight it. You can’t win against a bear. Fight the urge to flee from the markets altogether. You can’t run from a bear. So, if you can’t beat the bears, join them. Hibernate. 

Consider it a Hibernation Period 

The best thing to do during a bear market is to make like a bear and hibernate. Rather than endangering themselves by fighting the harsh winter months, bears sleep through it all. They don’t think about the cold or the wind. Instead, they dream of the warmth and food that will be there after the winter. Hibernation, in financial lingo, means perhaps placing more of your portfolio in U.S. Treasury bills and certificates of deposit (CDs), Bears sleep during the rough months. Your investments should, too. 

Exercise and Meditation to Manage Stress

Your mental state is affected by your physical health. Exercising regularly can manage stress by exerting energy. Meditation and relaxation can also impact how you respond to crises. Keeping your head on straight can help you make rational decisions. 

Calm Your Fears through Hypnosis 

Managing your emotions is the key to making it through these chaotic times. The stock market is impacted by collective psychology. Remain calm and be a role model for other investors. The more people realize it’s not the end of the world, the more likely the markets will stabilize. One way to achieve a state of calm and to manage stress is to use hypnosis. 

Hypnosis allows you to separate from the world’s collective psychology. Rather than becoming triggered or emotional, you can make decisions with a clear head. Hypnosis reframes your past memories and uncovers ones you have forgotten, which may be the driving force behind your rash decisions. Making emotion free decisions, uninfluenced by the media, can be achieved through hypnosis. 

Put Things into Perspective

In projecting performance, our perspective needs to change from short-term to long term rewards. Looking at the situation through an emotion-free filter can give you an edge when everyone else is panicking. 

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